Symlinked <User>/Downloads folder crashes Preview and TextEdit.
Solution here:
http://lnxg.wordpress.com/2011/07/21/psa-textedit-preview-10-7-crash/#comment-105
Solution from link: Delete Downloads symlink. Run 10.7 TextEdit and Preview which will recreate the Downloads folder and should not crash. Quit TextEdit and Preview then re-create symlink to alternate Downloads folder. TextEdit and Preview should no longer crash.